Subprime Lending Temporarily Out of Business
Many of the largest lenders are now forced to limit their lending to what they can keep or what they can sell to Fanie Mae and Freddie Mac, the government sponsored mortgage investors who buy only loans that fit their relatively conservative standards. Many brokers have found their subprime submissions even though approved, are "dead at the final yard." Innovative mortgage brokers have found alternative ways to finance their borrowers despite the subprime fallout. Private money lenders offer an attractive subprime alternative without all the extra paperwork.
Private Money Lenders May Offer Transitional Loans
While subprime lenders shut their doors, many deserving borrowers are scrambling to access cash from equity in their properties. Borrowers with substantial equity in their real estate still have sources of capital. A private money lender such as Helvetica is less concerned with the borrower's credit than with the protective equity in their property securing its loan. Borrowers in need of a quick refinance to ...
- consolidate debt,
- payoff liens,
- bailout a bankruptcy,
- avoid a foreclosure,
- market a listed property or
- get cash to transition through a turbulent mortgage market
... still have opportunities with a private money lender. Typically private money lenders will loan up to 65% of the quick sale value on a property and sometimes more in afinity areas i.e., those areas with historically high demand and that are less affected by cyclical swings in the economy.
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